A delivery guy from Zhejiang, starting with 500 U in the cryptocurrency market, managed to reach 60,000 U in just over a year, surpassing his savings from ten years of delivery. His life took off directly; he turned a few thousand into four to five hundred thousand, over a hundred times return, truly enviable.
This delivery guy is a college classmate of mine. We often say that students majoring in finance often face obstacles due to environmental factors, and he chose to return to Zhejiang, working in delivery out of necessity. He is a very meticulous person. When we traded stocks together in school, he showed his cautious nature. Many times, we were more aggressive, while he was more conservative at high levels, which is something I have consistently learned from him.
Turning 500 U into over 60,000 U was one of the things that stimulated me and made me want to truly enter the cryptocurrency market.
If you want to trade cryptocurrency for a lifetime but don't understand the technology and can't find a suitable trading method, why not try this 'foolproof' operation from my friend? It's simple and practical, even new investors can easily operate it with over 80% accuracy; buying and selling in the cryptocurrency market can follow this method! Is it difficult to make money trading cryptocurrencies?
If you haven't found a method, it is indeed very difficult. However, if your method is correct, you will find that making money is so easy. The method I'm sharing today is actually very simple, and even if you are a rookie in the cryptocurrency market, as long as you operate strictly according to this method, you can easily make money.
(K-line Practical Strategy) is the simplest and most practical short-term profit method.
Today, Brother Wen shares the five-day line strategy, which is one of the essential skills for playing short-term and band trading, and is also the simplest and most practical short-term strategy, applicable to contracts as well.
Let's first talk about what the five-day line is?
The five-day line is actually the five-day moving average, which refers to the average transaction price of a coin over five days, abbreviated as MA(5). Sounds simple, right?
The five-day line is also known as the five-day moving average. What is a moving average?
Moving average is the abbreviation for moving average line, reflecting the average cost of public holdings over a period of time, while also reflecting the strength and trend of coin prices. The moving average indicator is the simplest and most practical among technical analysis indicators, which is why investors can grasp this indicator relatively easily.
The principle of simplicity often means that simple things are the most practical and can bring investors unexpected returns.
Each trading platform's method for setting the five-day line is similar. Below, Brother Wen will explain how to set the five-day line using Huobi as an example.
If you find it too chaotic, you can click the 'x' in the second yellow box in the picture above to remove the 10-day, 30-day, and 60-day lines, displaying only the five-day line, making the chart look simpler.
How to use the five-day line strategy?
The five-day line actually represents the average holding price of players in the cryptocurrency market within five days; the average price is a psychological range, a short-term emotional window.
Thus, every time the coin price hits the average line, there will be a rebound or accelerated decline. This represents support or resistance levels.
Overall, it can be said that during an upward trend (bull market), when the coin price pulls back to the five-day line, it is an opportunity to increase positions; a chance for long positions.
In a downtrend (bear market), when the coin price rebounds to the five-day line, it is an opportunity to reduce positions. It is a chance to open short positions.
The principle of simplicity is very practical for investors without much technical foundation.
The rise or fall of coin prices generally follows the trajectory of the five-day line, which can be divided into three trends: rising, falling, and flat.
Use the five-day line strategy to identify buying points:
1. When the five-day line gradually levels off and slightly tilts upward, and the coin price breaks above from below the five-day line, K-line shows a bullish candle breaking through the five-day line, clearly above it, this is considered a buying point for contracts to buy long.
2. When the coin price is above the five-day line, if it dips below the five-day line during a pullback and then rises again, a bullish candlestick clearly stands above the five-day line, this is considered a buying point. Contracts can be bought for long positions at this time.
3. When the coin price is above the five-day line, if it dips below the five-day line during a pullback but the short-term five-day line continues to show an upward trend, this is considered a buying point. Contracts can be bought for long positions at this time.
Use the five-day line strategy to determine selling points
1. When the coin price is above the five-day line, after consecutive days of significant increase, if it moves further away from the five-day line, the same principle applies: things will reverse. Investors who have profited recently will create selling pressure at any time. This is a reference selling point. Contracts can be shorted at this time.
2. When the five-day line gradually flattens from an upward trend, and the coin price breaks down from the five-day line, while hovering around the five-day average, it indicates increasing selling pressure. This is a reference selling point. Contracts can be shorted at this time.
The five-day line strategy is the most suitable short-term skill for beginners to learn and master, even those with zero foundation can quickly get started because...
With a simple moving average quantification indicator, we can overcome the psychological panic and greed.
In the trading process, technology is not the biggest enemy; the biggest enemy is often the greed and panic within ourselves.
K-line is one of the important indicators for judging Bitcoin's rise and fall, a crucial signal for buying and selling.
Tip one: Don't sell if it hasn't peaked; don't buy if it hasn't dipped; avoid trading during consolidation.
Tip two: Buy on the downside, not the upside; sell on the upside, not the downside. Acting against the market makes one a hero.
Tip three: Consolidate highs and lows, just wait a little longer.
Tip four: High-level horizontal consolidation followed by a surge, seize the opportunity to sell quickly; low-level horizontal consolidation with new lows, it's a good time to buy in fully.
Tip five: Recognize a mistake before engaging, better to buy less than to buy more. Investment must be cautious!
The secrets to wealth have been shared with you all; whether you can become famous in the circle depends on yourself.
In the cryptocurrency world, achieving financial freedom and class leap, I've summarized 10 trading skills. Understand one, and you too can achieve stable profits, worth repeated learning:
1. Two-way trading: Suitable for bull and bear markets. Two-way trading is currently the most common trading method on the Giant Stone Wealth GGtrade platform, allowing operations based on the market trends, with options to buy up or down. As the year ends, the platform has launched a series of benefits, such as a 20% increase in investment returns, making it a great boon for investors.
2. Coin Hoarding Method: Suitable for bull and bear markets. The hoarding method is the simplest yet the most difficult play. It is simple because it involves buying a certain coin or several coins and holding them for more than six months or a year without operating. Generally, the minimum return is tenfold. However, beginners often see high returns or experience a coin's price halving, planning to switch or exit. Many find it hard to persist for a month, let alone a year. So, this is actually the hardest.
3. Bull Market Dip-Chasing Method: Suitable only for bull markets. Use a portion of spare cash, preferably not exceeding one-fifth of your funds. This method is suitable for coins valued between 20-100, as they won't be stuck for too long. For example, if you buy the first altcoin and it rises by 50% or more, you can switch to the next coin that has crashed, and so on. If your first altcoin gets stuck, just continue to wait; in a bull market, it will surely unstick. The prerequisite is that the coin cannot be too risky; this method can be challenging to control, so newcomers need to be cautious.
4. Hourglass Switching Method: Suitable for bull markets. In a bull market, basically any coin you buy will rise. Funds act like a giant hourglass, slowly seeping into each coin, starting with large coins. There is a clear trend in price rises: leading coins rise first, such as BTC, ETH, DASH, etc., followed by mainstream coins like LTC, XMR, EOS, NEO, QTUM, etc. Then, coins that haven't risen will generally go up, like RDN, XRP, ZEC, etc., and finally, various small coins will take turns rising. However, if Bitcoin rises, you should pick the next level, choosing coins that haven't risen yet to start building positions.
5. Pyramid Bottom Buying Method: Suitable for predicting significant crashes. Bottom buying method: separately entrust 10% of the position to buy coins at 80% of the coin price, 20% at 70%, 30% at 60%, and 40% at 50%.
6. Moving Average Method: Understand some basic K-line principles. Set the indicator parameters to MA5, MA10, MA20, MA30, MA60, and select the daily line level. If the current price is above MA5 and MA10, hold steady. If MA5 drops below MA10, sell the coin; if MA5 rises above MA10, buy to build positions.
7. Violent Hoarding Method: Do coins you are familiar with, suitable only for long-term quality coins. With a certain amount of liquid funds, if a coin's current price is 8 USD, then entrust to buy at 7 USD. When the buy order is successfully executed, entrust to sell at 8.8 USD. Profit comes from hoarding coins. Withdraw liquid funds and continue waiting for the next opportunity. Adjust dynamically based on the current price. If there are three such opportunities in a month, you can hoard quite a few coins. The formula is the entry price equals the current price multiplied by 90%, and the sell price equals the current price multiplied by 110%!
8. Aisuo Violent Compounding Method: Continuously participate in ICOs, when the new coin's price increases by 3-5 times, take back the principal, and invest in the next ICO, leaving the profits to continue circulating.
9. Cyclical Band Method: Find coins similar to ETC, when the coin price continuously falls, increase the position, and keep adding when it drops further, then wait for profit to sell out, continuously cycling.
10. Small Coin Violent Play: If you have 10,000 RMB, split it into ten parts, buy ten different types of small coins, preferably under 3 RMB. After buying, don't interfere. Don't sell until it rises 3-5 times; if you get stuck, just hold on to it as a long position. If a certain coin triples, take back the principal of 1,000 RMB, then invest in the next small coin. The compound interest returns can be astonishing!
This is the trading experience that Brother Wen shared with you today. Many times, you lose many profitable opportunities because of your doubts. If you don't dare to try boldly, to touch, to understand, how will you know the pros and cons? You must take the first step to know how to proceed next. A warm cup of tea and a piece of advice, I am both a teacher and a good friend who is easy to talk to.
Meeting is fate, knowing is separation. Brother Wen firmly believes that fate will lead to meeting across thousands of miles, while separation is destiny. The road of investment is long; momentary gains and losses are just the tip of the iceberg. Know that even the wisest can make mistakes, and the least knowledgeable can gain. Regardless of emotions, time will not stop for you. Pick up the burdens in your heart, stand up again, and move forward.
Old Bo's practical trading, the team still has places available.